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Australia keeps policy rate steady at 3.6% as inflation worries loom

The Reserve Bank paused after three cuts this year as inflation eased but risks persist, with 35% of homeowners still struggling to pay mortgages, analysts said.

  • Australia's central bank held the benchmark policy rate at 3.6% in response to inflation concerns, which is at its highest level since July 2024, according to reports from the Reserve Bank of Australia.
  • The country's annual inflation rate rose to 3.0% in August 2025, driven by increasing housing, food, and alcohol prices, as reported by the Australian Bureau of Statistics.
  • Australia's GDP grew by 1.8% year over year, which was higher than the 1.6% expected by economists, with growth driven by domestic spending.
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9News broke the news in Australia on Tuesday, September 30, 2025.
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